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Why Is Foreign Government Ownership of U

Question 111

Multiple Choice

Why is foreign government ownership of U.S.debt NOT currently a huge concern among many economists?


A) It could lead to eventual foreign control of our economy and policies,which would encourage economic growth in the future.
B) The United States has a proven track record of negotiating debt-forgiveness deals,so it is unlikely that the debt will have to be paid back.
C) Foreign ownership of U.S.debt drives interest rates up,which is good for savers in the United States.
D) The amount of debt held by foreigners is substantially less than the money the United States owes itself.
E) Foreign countries would bail out the United States if its debt ever became too large to manage.

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